Lambda Labs is reportedly seeking $800m in funding for its GPU cloud offering.
According to a report by the Financial Times, the term sheets for the funding round could arrive in mid-July.
Coordinated by JPMorgan, the capital raised from the round would be used to purchase additional Nvidia GPUs, associated network infrastructure and software, and to hire new staff.
According to estimates from The Next Platform, 16,000 Nvidia H100s would cost around $1.5bn to purchase, deploy, and network, but could make over $5bn in revenue in just four years.
This new funding round would be the third cash injection Lambda has received so far this year. In April, the company secured a $500m financing vehicle in a Macquarie Group-led funding round, with participation from Industrial Development Funding.
In February, Lambda closed a $320 million Series C funding round that saw the company receive a valuation of $1.5bn.
While a significant funding round, the Lambda raise pales in comparison to competitor CoreWeave's most recent debt financing. CoreWeave raised $7.5bn in May 2024 in a round led by Blackstone and with strategic participation from Magnetar and Coatue. That same month, the company closed a $1.1bn Series C funding round. The year prior, CoreWeave raised $2.3 billion in debt financing.
Founded in 2012, Lambda Labs rents out colocation space in data centers in San Francisco, California, and Allen, Texas, and offers comparatively low-cost GPU-based cloud compute. Alongside the cloud, it provides colocation space and sells GPU desktops.
Other new players attempting to enter the GPU cloud market include NexGen Cloud, Nscale, and Civo.
